Regulating cryptocurrencies can be done in many different ways. Japan’s government has paved the way for a positive approach in this regard. The same country is now urging the G20 to maintain a positive approach as well. However, they do want the G20 to address potential money laundering issues.
The G20 and Crypto Regulation
It is not the first time the G20 and cryptocurrency regulation is mentioned in the same breath. French and German officials urge this governing body to take a harsh stance against this new form of money. The lack of official regulation and accountability is considered to be a big threat to financial stability. Cryptocurrency allows everyone to be their own bank, which poses challenges and risks.
At the same time, cryptocurrency introduces a lot of new opportunities. Making the most of those potential changes is equally as important. Finding the middle ground between over-regulation and allowing for innovation is not all that easy. In fact, it is a regulatory puzzle the G20 will have to address a lot sooner than they might like.
Japanese officials want to have some form of crypto regulation by the G20 as well. However, their focus is more on preventing money laundering efforts altogether. Protecting consumers is of great importance as well. None of this indicates the organization wants to ban cryptocurrencies and limit the trading possibilities. Instead, they will focus on the actual matters at hand, while still allowing these new currencies to thrive accordingly.
Determining the Fate of Cryptocurrency
Building a proper regulatory system for cryptocurrency is very difficult. It isn’t easy to do in one country, let alone for the G20. As powerful as this entity may be, every country tends to approach these matters differently. Finding common ground has proven to be a hassle more often than not, regardless of the topic at hand. One common feeling among the member states is how too strict regulation for cryptocurrency would have an adverse effect first and foremost.
For now, a report will be drafted on how this money laundering threat can be assessed. The Financial Action Task Force is currently putting together their finds. This report will be presented to the G20 during their next meeting this year. The Japanese officials simply want a unified course of action across all nations. Right now, certain regions are prone to “loose regulation”, which makes the fight against money laundering a lot harder.
Whether or not we will see any major developments soon, remains to be seen. Protecting consumers while allowing Bitcoin and altcoins to thrive is not straightforward. With the support of Japan in favor of positive regulatory measures, things will get rather interesting in the coming months. It is evident Japan is very keen on this new form of money. They are also one of the few countries worldwide to effectively legalize cryptocurrency as a payment vehicle.